The first priced equity round, usually $5M to $20M raised after product-market fit , with full term sheets, board seats, and preferred stock instead of the lightweight paper of seed.
The rule of thumb that emerged from 2010s SaaS investing: ~$1M in annual recurring revenue, growing 3x year-over-year, with strong retention — that's the threshold where Series A funds (Benchmark, Accel, Sequoia, Index) start taking meetings. The bar has moved with each market cycle: $3M+ ARR in 2024 vintages.
